Text: Shoujo Institute of Finance and Economics, Mondo.Different choices, different results. Through the new cycle, the time has come to test the great wisdom.Edited by Wu Shuang.
On December 11, the news of Li Ning's 2.2 billion ** real estate sparked heated discussions. The stock price fell sharply on the day, closing at 18HK$30 shares, down 1429%, the market value fell by nearly 8 billion in a single day, and only 480 remained4.3 billion yuan.
In this regard, Li Ning explained that it is used as the group's Hong Kong headquarters, which is conducive to strengthening international business development. It is a good thing to consolidate the strategy and show the growth strength, but such twists and turns should make Li Ning's senior management a little surprised, and even "cry out for injustice".
From a deep point of view, it is mainly related to the market performance of Li Ning Company. Not long ago, the company lowered its annual performance expectations, and the data for the third quarter was not ideal, so it is urgent to improve its main business, and there are many places to spend money. Now that they are buying a lot of real estate, is there a bit of "not doing business", how can investors rest assured?
In contrast, Youngor, which had been in the real estate market, and Shunxin Agriculture, began to turn to the first and were ready to "close their hearts" to embrace the original main business. Interestingly, Youngor has just made a move to "buy a house", so why? Did you bet on the right treasure this time?
1 Profit has changed face, why return to the old bank On December 7, Youngor announced that it planned to change the company's name "Youngor Group Shares" to "Youngor Fashion Shares".
One stone stirs up a thousand waves. You must know that although it started in the textile and garment industry, Youngor has made a lot of profits in investment and real estate in recent years, and is often questioned for "not doing business". From 2007 to mid-2023, the total net profit attributable to the parent company of the enterprise will be 54 billion yuan, and the cumulative net investment income will reach 476400 million yuan.
What is not the main business, making money is my main business. But we have to pay dividends not only to shareholders, but also to make the stock price go up. ”
In 2019, the words of Li Rucheng, a family member, are still in my ears. It seems to be realistic and pragmatic, but it is actually the epitome of years of business wisdom. In order to make money, Li Rucheng led Youngor to explore diversification a long time ago.
From the first investment business in 1999, to the investment income in 2005, the investment income once exceeded 20 billion, and then in 2007, it proposed that investment, clothing, and real estate go hand in hand. Under the leadership of Li Rucheng, Youngor once won the title of the most profitable enterprise.
So, why do you want to change your name? In this regard, Youngor explained that the strategic goal of building a world-class fashion industry group has been established, and the future will further focus on the main fashion business, and the word "fashion" in the new name can more accurately reflect the company's business and planning.
In a word, I want to "close my heart" to do my main business, and even change the company's name in order to show my determination.
In fact, Li Rucheng has repeatedly shouted about returning to the main clothing business. As early as 2019, on the occasion of YOUNGOR's 40th anniversary, it announced that the company would no longer make financial investments, and shouted a new goal of "building a world-class fashion group".
However, in 2020, the company's investment sector revenue was 3330610,000 yuan, real estate is 507.1 billion yuan, cultural tourism is 13.2 billion yuan, and the clothing sector was 575 billion yuan, 700 million yuan for textiles. The fashion, real estate and investment sectors each achieved a net profit of 9600 million, 165.7 billion, 465.5 billion yuan. It is clear which is more important at a glance.
In 2021, the revenue of Youngor's real estate business will be as high as 666.5 billion yuan, and the net profit attributable to the parent rose to 22$8.9 billion; In the same period, the revenue of the apparel segment was 604.7 billion yuan, and the net profit attributable to the parent company rose to 8$8.1 billion.
In 2022, YOUNGOR will merge the real estate business with the tourism sector, and thanks to the smooth pre-sale of real estate projects such as Ningbo Jiangshang Yunjing and Xianghu Dandi Phase III, the revenue of the sector will reach 855 billion yuan. According to the ** Times, Ningbo Jiangshang Yunjing and other projects achieved pre-sales of 674.1 billion yuan. The profit of the clothing sector was 555.1 billion yuan, 58.3 billion yuan, respectively. 83%。
However, entering 2023, the style of painting has changed abruptly. The total revenue of the company in the first half of the year was 58700 million yuan, down 38 percent year-on-year5%, net profit 206.5 billion yuan, down 34%. The reason for chasing it is due to the pull of the real estate business: the revenue is only 210.8 billion yuan, a year-on-year decline of 6643%, accounting for 35% of total revenue89%, a big minus 2986 percentage points. The apparel segment had a revenue of 324.7 billion yuan, a year-on-year increase of 1422%, accounting for 55% of total revenue30%, a year-on-year increase of 2553 percentage points.
In the first three quarters, the decline in performance has not disappeared. Revenue 745.8 billion yuan, a year-on-year decrease of 4185%；Net profit attributable to the parent company 269.3 billion yuan, down 35 percent year-on-year78%。The decline was wider than the interim report.
According to the data of the National Bureau of Statistics, from January to November this year, the national real estate development investment was 123863 billion yuan, a year-on-year decrease of 98%；Among them, residential investment was 9,401.6 billion yuan, down 9.0 million2%。
There is no eternal god of stocks in the world, and real estate is experiencing a cold winter reshuffle. In the face of changes in the market environment, it is reasonable for Li Rucheng, who is committed to "making money", to speed up his return.
The garment industry has a huge chassis and still has a lot to offer, but the stock competition is involuted enough, and it is not easy to really do a good job, so we must focus on it and go all out. Especially with the goal of "world-class", it is not enough to change the name and show determination.
2 Buy, buy, buy, lack of money, on December 4, Meibang clothing said, to 6800 million yuan *** a store on Chunxi Road in Chengdu. The receiver is none other than Youngor, who shouted to revitalize the main business.
If you stretch the line of sight, this is the fourth time that Youngor has shot in the past year. In October and December 2022, the shops at No. 145 Zhonghua Middle Road, Guiyang City, and the shops in Unit B, Building 1, Spanish Style Street, Optics Valley World City, Wuhan City, were respectively assigned to the store, and the two transactions totaled 3200 million yuan.
On June 19 this year, with 300 million **, Meibang Shenyang City, Heping District, Taiyuan Street No. 1, No. 1-1 store. If you add 6800 million yuan. Youngor spent a total of 1.3 billion yuan to "buy a house", about 62% of the net profit in the first half of the year95%。
Such arrogance, at first glance, is mainly due to the fact that there is no shortage of money. As of the first three quarters of 2023, YOUNGOR's net profit fell by 35% to 269.3 billion yuan, Flush data shows that the scale of net profit ranks first in the industry.
In the view of industry analyst Sun Yewen, Youngor has successively won Meibang stores, which has the intention of investing in commercial real estate and enhancing channels. Taking Chunxi Road Meibang Building store as an example, the revenue in the first half of the year was 631780,000 yuan, ranking fifth among all stores in Meibang. However, we should also be wary of excessive models and obsessed with investment play, which will intensify the pressure on the capital chain of enterprises. After all, the high cost of offline self-sustaining operation is a great test of the refinement, specialization and specialization of management. Although the company seems to be not bad for money, the decline in revenue and profit is still worth watching.
It's not too much of an exaggeration. As of the end of September 2023, Youngor's asset-liability ratio was 5325%, in the same period, Heilan House and Semir Clothing were. 81%。
Although the book money funds amounted to 1342.9 billion yuan, but only short-term borrowings have 1230.3 billion yuan. If you add 93 billion accounts payable and notes, and 50The non-current liabilities of 7.3 billion yuan due within one year are visible to the naked eye. Is there a lack of money?
And unlike peers such as Semir Apparel and Peacebird, the company still has high contract liabilities. As of the end of September, the amount was as high as 1262.8 billion yuan, a year-on-year increase of 9828%, accounting for 35% of the company's current liabilities for the same period58%。
The so-called contractual liability refers to the obligation of the enterprise to transfer the goods to the customer for the consideration received or receivable from the customer. In this project, the lender registered the amount of the right to receive or obtain the unconditional right to receive the contract consideration before the transfer of the goods to the customer.
Guo Xing, an industry analyst, said that the reason for the high contract debt of Youngor is the real estate business. In the short term, the contract liabilities bring cash flow to the company's development, but it is also necessary to take on the responsibility of handing over the building in the future, and the long-term test of cash flow must be observed.
All in all, Youngor, which has a diversified business, still has a lot of money. Frequently spending money to "buy a house", is it a bit presumptuous?
In addition to "buying a house", the investment side also has a lot of money. On December 1, Bank of Ningbo announced that Youngor, a shareholder holding more than 5% of the shares, increased its holdings of the company's A shares by a total of 2,195 from November 27, 2023 to November 30, 2023 through the Shenzhen ** Exchange trading system540,000 shares.
According to the announcement of YOUNGOR, as of November 30, 2023, the company held a total of 658,509,757 shares of Bank of Ningbo, accounting for 833% to 997%。
Interestingly, the other major shareholder of Bank of Ningbo, Hong Kong**Settlement***, continued during the year**. From March 31 to September 30, the cumulative amount was **4802660,000 shares, corresponding to the shareholding ratio of 629% to 555%。
3 Li Rucheng "closed his heart"?
One to the left and one to the right, leaving time to answer who is right and who is wrong. What is certain is that investment will always have to be a game with risk, what is the actual action of Youngor, who shouts "world-class" and returns to his main business?
Looking back on the past investment history, there have been highs and lows. For example, in 2015, **CITIC shares, the total investment cost was 1706.2 billion yuan. In 2016, the stock price of CITIC shares**, Youngor held a loss of 377.4 billion yuan. In January 2018, it issued an announcement on the provision for the impairment of CITIC shares' assets, and planned to provide for impairment of 330.8 billion yuan.
Returning to Bank of Ningbo, as a listed bank with a non-performing rate of less than 1% for 15 consecutive years, Bank of Ningbo has always been known for its steady operation. However, combing the recent **, there are also slots worth being wary of.
Revenue for the third quarter was 1509.1 billion yuan, a year-on-year decrease of 188%；Net profit 640.2 billion yuan, a year-on-year increase of 809%。The non-performing loan ratio was 076%, an increase of 001 percentage point; The provision coverage ratio is 48057%, a decrease of 2433 percentage points.
On December 1, Bank of Ningbo received four fines in a row for misreporting regulatory standardization data; False entrusted payment, and the loan funds are retained in the borrower's account for a long time; The enterprise was fined 5.2 million yuan for inaccurate planning and other reasons.
On December 13, Juling financial data showed that northbound funds were estimated at 7654 by Bank of Ningbo on the 12th180,000 yuan, ranking 24th, with a total market value of 669.4 billion yuan, accounting for 482%。As of December 15, the share price of Bank of Ningbo was 2039 yuan, compared to 24 on November 168 yuan fell nearly 18%. Compared to 31 at the beginning of the year8 yuan, down more than 35%.
Say a thousand things, it's better to ** a piece. From a business point of view, although Youngor and Li Rucheng shouted out the return to clothing, it seems that they have not given up their diversified layout from the above actions. Listening to his words, we must also observe his deeds, compared with changing the name and expressing determination, whether the actual pace of "closing the heart" should be faster and see more real chapters?